PROFITS AND RISKS The answer depends mainly on such considerations
as length of purse and strength of nerve. Those who can afford without financial strain to lock away their purchases and who do not worry unduly over minor setbacks in prices, have an opportunity at present of picking up many shares at attractive levels. Their best policy just now is to work on the " scale " principle, i.e., buy only a part of their intended purchase first of all, retaining the funds with which to complete the purchase if the quotation should fall by, say, a further to per cent. later on. Such investors would, in effect, be expressing their' willingness to: run the risks of a major .international disturbance in order to obtain the full benefit of the inevitable recovery in values whenever the political clouds lift.
Whether or not a reader of these notes is in this category and therefore justified in opening up commitments on a moderate scale is for himself to decide, but I. repeat that this is not a tine for haphazard speculation induced by vague hopes of a general rise in Stock Exchange prices. Investors who are not impressed by the chances of improvement in international politics or to whom risk-bearing is, by reason of purse or tem- perament, always a process more painful than pleasant, had far better wait a little longer and keep their powder dry. They will miss the first fruits of market recovery, but be willing to pay rather higher prices for the sake of peace of mind.
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